Over the years, the GBER has become increasingly essential for EU‑level economic development, as it ensures the following benefits:

• Speed: Member States can launch programmes rapidly without waiting for ex‑ante Commission authorisation.

• Predictability: The regulation clearly defines which types of aid and conditions apply automatically, enabling both managing authorities and beneficiaries to anticipate requirements.

• Legal certainty: Aid granted under the General Block Exemption Regulation is presumed lawful, minimising the risk of the Commission later determining the measure to be unlawful state aid.

In 2026, the European Commission proposed the most extensive revision of the General Block Exemption Regulation to date. The public consultation runs until 23 April 2026, and the new framework is expected to enter into force in January 2027. Through this reform, the EU aims to create a framework that is simultaneously:

• faster and more flexible,
• better aligned with the green and digital transitions,
• supportive of broader social and regional objectives,
• while continuing to safeguard fair competition.

Easier implementation, reduced administrative burden

One of the primary goals of the proposed amendments is to reduce administrative burdens for both aid‑granting authorities and applicants. This includes encouraging broader use of simplified cost options, which significantly ease documentation requirements.

These simplified methods include:

• lump sums,
• unit costs, and
• flat‑rate financing.

The draft proposal would also eliminate the mandatory evaluation plans required for large‑budget aid schemes – an obligation that previously consumed substantial resources. This measure would enable faster programme launch and more efficient implementation.

Aid could also become easier to grant for smaller‑scale projects. In certain areas – such as R&D or environmental projects – higher aid intensities may become available regardless of company size. Higher aid intensities reduce the required private contribution, thereby improving access to funding.

This is particularly advantageous in sectors where projects require high upfront investment or where innovation involves significant risk – areas in which many companies have so far been excluded due to the high level of own financing previously required.

Prioritising the green and digital transitions

The reform of the General Block Exemption Regulation – fully aligned with EU strategic objectives – puts an increased emphasis on climate neutrality and technological progress.

The new rules would:

• simplify the framework for environmental and energy‑related aid, and
• significantly expand the range of support available for renewable energy, energy efficiency and decarbonisation.

For operating aid in renewable energy schemes, the proposal would abolish the current EUR 300 million annual programme cap, enabling Member States to launch substantially larger schemes. This is particularly relevant given the rapid expansion of green energy investments. The maximum aid per beneficiary would, however, remain in place to prevent distortions of competition.

Digitalisation appears as an independent aid category under the revised regulation. The new measure supporting digital transition for SMEs and small mid‑cap companies reflects the EU’s recognition that technological upgrading is essential for competition, innovation and economic dynamism across the European internal market. Digitalisation‑related investments – such as automation, cybersecurity or digital infrastructure – would become eligible more easily and rapidly.

Strengthening social and regional objectives

The proposed amendments support not only economic growth, innovation and climate neutrality, but also social cohesion.

As part of this:

• a completely new category – aid for social enterprises – would be introduced, offering favourable conditions for public‑benefit activities;
• to address the housing crisis, the Commission would allow higher aid intensities for energy‑efficiency renovations of social and affordable housing.

From a regional perspective, a key development is that agriculture, fisheries and aquaculture would fall more broadly under the scope of the new General Block Exemption Regulation, enabling regional investment aid to be granted even for primary agricultural producers. This would significantly contribute to the economic development of rural areas.

Owing to the ongoing transformation of the labour market, the proposal places strong emphasis on training and reskilling, especially in digital, technological and STEM competences. This responds both to labour shortages and to the growing need for new skills – while also acting as a prerequisite for a successful green and digital transition.

The significance of the reform

The comprehensive reform of the General Block Exemption Regulation represents a strategic turning point in EU state aid policy. The framework expected in 2027 is not a mere technical adjustment; it is a broad‑based modernisation that will shape EU state aid policy for the next decade. Consequently, once implemented, it may significantly transform the state aid framework based on Individual Government Decisions (EKD) in Hungary.

The objective of the amendments of the General Block Exemption Regulation is to ensure that the aid environment can respond more flexibly to rapidly evolving technological, environmental and market challenges, while strengthening competitiveness and Member State autonomy. As the reform requires companies to rethink their approach to investment‑related aid in the long term, we recommend seeking expert support. The Strategic Advisory, State Aid and Incentives business line of WTS Klient Hungary is ready to assist you. Please feel free to contact us!

This article provides general information and does not constitute advice.

A Renewal of the General Block Exemption Regulation bejegyzés először WTS Klient Hungary | tax | accounting | payroll | advisory | HR services | digital solutions | state aid-én jelent meg.

One of the key innovations of the new framework is the accelerated and simplified approval procedure, which aims to speed up the implementation of renewable energy programmes and related investments. The regulation facilitates the faster integration of solar and wind energy into energy systems and supports the rollout of low-carbon fuels such as blue and green hydrogen. Member States may provide aid to energy-intensive companies exposed to international competition, provided that they are willing to invest in decarbonisation. The framework is technology-neutral, meaning any investment contributing to greenhouse gas emission reduction or improved energy efficiency may be eligible for support.

CISAF defines a total of five aid categories. Aid for the deployment of clean energy covers renewable energy generation, storage, low-carbon fuels, flexibility solutions, as well as temporary price support for energy-intensive industries. Aid for industrial decarbonisation aims to reduce emissions from industrial activities or improve their energy efficiency, without increasing production capacity. The level of support can be set administratively, based on the funding gap, or through a competitive bidding process.

Aid for scaling up manufacturing capacity of clean technologies applies to products covered by the Net Zero Industry Act (NZIA) – including nuclear technologies – as well as their key components and the critical raw materials needed for production. In more developed regions such as Budapest, the support may cover up to 15% of eligible costs (maximum EUR 150 million), while in less developed regions – which comprise most of Hungary – the intensity can reach 35% (up to EUR 350 million). For small and medium-sized enterprises (SMEs), the aid intensity can be increased by an additional 10–20 percentage points. The framework also allows for accelerated depreciation of investments.

In addition, individual projects positively evaluated by the EU under the Innovation Fund are also eligible for support. The fifth category focuses on de-risking green-oriented private investments through various financial instruments – such as public equity, loans, and guarantees – and may involve financial intermediaries.

CISAF is expected to serve as the basis for new national-level support schemes across most Member States, helping to more effectively encourage green investments.

On 25 June 2025, the European Commission adopted a new state aid framework in support of the objectives of the Clean Industrial Deal: the Clean Industrial State Aid Framework (CISAF), which will remain in force until 31 December 2030.
If you have any questions regarding the topic discussed in this article, the experts of WTS Klient is always ready to assist you with professional support.

This article provides general information and does not constitute advice.

A New EU Regulation to Support Clean Industry bejegyzés először WTS Klient Hungary | tax | accounting | payroll | advisory | HR services | digital solutions | state aid-én jelent meg.